-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, DRpI1O/a8pvn6JvpxAwIFIaUOHo5/FDvkQMz83nc3xCMyhiA9pPtafX3AUL4aaqI wc/hp2JpRQ3O2N6Lq269EQ== 0001012895-01-500095.txt : 20010802 0001012895-01-500095.hdr.sgml : 20010802 ACCESSION NUMBER: 0001012895-01-500095 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20010731 ITEM INFORMATION: ITEM INFORMATION: ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 20010801 FILER: COMPANY DATA: COMPANY CONFORMED NAME: LEXON TECHNOLOGIES INC CENTRAL INDEX KEY: 0001065189 STANDARD INDUSTRIAL CLASSIFICATION: BLANK CHECKS [6770] IRS NUMBER: 870502701 STATE OF INCORPORATION: DE FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 000-24721 FILM NUMBER: 1694445 BUSINESS ADDRESS: STREET 1: 1401 BROOK DRIVE CITY: DOWNERS GROVE STATE: IL ZIP: 60515 BUSINESS PHONE: 6309166196 FORMER COMPANY: FORMER CONFORMED NAME: REXFORD INC DATE OF NAME CHANGE: 19980630 8-K 1 f8klexon.txt CURRENT REPORT ON FORM 8-K 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Item 2-July 25, 2001; Item 4-May 30, 2001; Item 5-July 27, 2001 --------------------------------------------------------------- (Date of Report: Date of earliest event reported) LEXON TECHNOLOGIES, INC. (Exact name of registrant as specified in its charter) Delaware 0-24721 87-0502701 - ---------------------------- ----------------------- -------------------- (State or other jurisdiction (Commission File Number) (IRS Employer ID No.) of incorporation) 1401 Brook Drive, Downers Grove, Illinois 60515 -------------------------------------------------- (Address of principal executive office) Registrant's telephone number, including area code: (630)916-6196 -------------- 2 ITEM 2. DISPOSITION OF ASSETS On July 25, 2001, Lexon Technologies, Inc. (the "Company") received a notice and demand letter from The Miller Group ("Miller") that Miller was exercising certain of its rights as a secured creditor due to the Company's default on payments due under a Security Agreement between Miller and Chicago Map Corporation, the Company's wholly owned subsidiary, dated November 18, 1999 (the "Security Agreement"). The demand letter requires the Company to assemble all of collateral subject to the Security Agreement and make it available to Miller. The demand letter further announces Miller's intention to dispose of the collateral in a public sale to be held August 14, 2001. The collateral subject to the Security Agreement is essentially all of the assets of Chicago Map Corporation. The Company has unsuccessfully sought equity and/or debt financing to fund current operations and stave off creditors. After exploring available alternatives to the seizure of the affected collateral, the Company has determined that allowing Miller to proceed is the only option which might permit customers of Chicago Map Corporation to continue to receive service while the sale is proceeding. The complete text of the demand letter is attached as an exhibit to this filing. The demand letter includes a detail of the collateral subject to seizure and sale. ITEM 4. CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANT On May 30, 2001, the Company's auditors, Hutton Nelson & McDonald, LLP, ("HN & M") sent the Company a termination notice confirming the cessation of the client-auditor relationship due to non payment of fees for professional services rendered during 1999 and 2000. The Company has not attempted to engage alternative auditors because the Company currently does not have any funds available to hire such alternative auditors. (See Item 2 above and Item 5 below). During the Company's two most recent fiscal years ended December 31, 1998 and 1999, respectively (the "Prior Fiscal Years"), HN & M did not issue any adverse opinions or disclaimers of opinion or qualify or modify an opinion as to uncertainty, audit scope, or accounting principles. During and the interim period from January 1, 2000 through September 30, 2000 (the "Interim Period"), HN & M modified its review reports for the six months ended June 30, 2000 and the nine months ended September 30, 2000, respectively, to include an explanatory paragraph as to uncertainty about the Company's ability to continue as a going concern. During the Prior Fiscal Years and the Interim Period, the Company has had no disagreement with HN & M as to any matter of accounting principles or practices, financial statements disclosure or auditing scope or procedure which, if not resolved to the satisfaction of HN & M, would have caused it to make reference to the subject matter of such disagreement in connection with its reports for the Prior Fiscal Years. There were no "reportable events" as such term is referred to in Item 304(a)(1)(v) of Regulation S-K during either (i) the Prior Fiscal Years or (ii) the Interim Period. The Company has requested that HN & M review the foregoing disclosures and provide a letter addressed to the Securities and Exchange Commission stating whether they agree with the above statements and, if not, stating in what respects they do not agree. HN & M's letter is included as an exhibit to this report on Form 8-K. The complete text of the termination letter is also attached as an exhibit to this filing. 3 ITEM 5. OTHER INFORMATION The Company's financial situation is desperate. The assets subject to seizure by The Miller Group, as detailed in Item 2 above, represent essentially all of the assets of the Company. Chicago Map Corporation has been the operating entity for the Company and the seizure of assets means that the Company will have no operations. The directors have explored various alternatives in order to maintain operations, including capital infusions through debt and/or equity financing, joint venture business arrangements, and renegotiation of outstanding liabilities with The Miller Group and other creditors. None of these efforts have been successful. Management reduced expenses and eliminated employees in a further effort to control costs and maintain operations. Because of the Company's financial straits, the Company has not been able to pay the professional fees owed to accountants and attorneys for the filing of its periodic reports with the Securities and Exchange Commission. The last report filed was for the quarter ended September 30, 2000. This failure to file resulted in loss of the listing for the Company's common stock on the NASD's over-the-counter quotation system in May 2001. At this date, the Company's liabilities greatly exceed its assets. The directors have determined that there are no viable alternatives to a bankruptcy filing under Chapter 7 of the U.S. Bankruptcy Code, and intend to make such a filing in the immediate future. ITEM 7. EXHIBITS The following exhibits are included as part of this report: SEC Exhibit Reference Number Number Title of Document Location - ----------------------------------------------------------------------------- 99 99 Demand Letter dated July 25, 2001 This filing 16 16.01 Resignation Letter from Hutton Nelson This filing & McDonald dated May 30, 2001 16 16.02 Letter from Hutton Nelson & McDonald This filing Relating to its resignation SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. LEXON TECHNOLOGIES, INC. Date: July 31, 2001 /S/Kenneth J. Eaken, President and Chief Executive Officer EX-16 3 ex1601.txt RESIGNATION OF FORMER AUDITOR 1 EXHIBIT 16.01 Hutton Nelson & McDonald, LLP Certified Public Accountants 1815 South Meyers Road, Suite 550 Oakbrook Terrace, Illinois 60181-5230 May 30, 2001 Mr. Kenneth J. Eaken Lexon Technologies, Inc. 1401 Brook Drive Downers grove, Illinois 60515 Dear Ken: This letter is to confirm that the client-auditor relationship between Lexon Technologies, Inc. (Commission File Number 000-24721) and Hutton Nelson & McDonald, LLP has ceased due to lack of payment of fees for professional services rendered during 1999 and 2000. Sincerely, /S/Keith Freidlein Hutton Nelson & McDonald, LLP cc: Office of the Chief Accountant SECPS Letter File Securities and Exchange Commission Mail Stop 9-5 450 Fifth Street, N.W. Washington, D.C. 20549 EX-16 4 ex1602.txt CONFIRMATION LETTER FROM FORMER AUDITOR 1 Exhibit No. 16 Hutton Nelson & McDonald, LLP Certified Public Accountants July 31, 2001 Office of the Chief Accountant Securities and Exchange Commission 450 Fifth Street NW Washington, D.C. 20549 Re: Lexon Technologies, Inc., Commission File Number 000-24721 Dear Sir/Madam: We were previously principal accountants for the Company and under the date of February 18, 2000, except for Note 17 to the consolidated financial statements as to which the date is March 6, 2000, we reported on the consolidated financial statements of the Company for the years ended December 31, 1999 and 1998. On May 30, 2001, we terminated our relationship with the Company due to non payment for services rendered. We have read the Company's statements included under Item 4 of its current report on Form 8-K dated July 31, 2001, and we agree with such statements, except that we are not in a position to agree or disagree with the Company' statement that they have no funds available to engage alternative auditors. /S/Keith Freidlein Nelson & McDonald, LLP Certified Public Accountants 1815 South Meyers Road, Suite 550 Oakbrook Terrace, Illinois Telephone (630) 495-5400 Facsimile (630) 495-0561 EX-99 5 ex99.txt DEMAND LETTER FROM SECURED CREDITOR 1 EXHIBIT 99 Demand Letter THE MILLER GROUP July 25, 2001 Lexon Technologies, Inc. Att: Ken Eaken, President Via facsimile: 630.916.6218 Chicago Map Corporation Original mailed Att: Ken Eaken, President 1401 Brook Drive Downers Grove, Illinois 60515 Dear Mr. Eaken: This letter serves as notice that we are exercising certain of our rights as secured creditors pursuant to the Security Agreement (the "Security Agreement"), made and entered into as of the 18th day of November, 1999, by Chicago Map Corporation, in favor of Miller Capital Corporation, as agent for the Lenders. Under Section 8.1 of the Security Agreement, an "Event of Default" has occurred and is continuing to occur. Lexon has defaulted on its payment obligations under the promissory notes issued pursuant to the Securities Purchase Agreement ("Securities Purchase Agreement") dated as of August 10, 1999, by and among Lexon Technologies, Inc., a Delaware corporation and parent company of Chicago Map Corporation, Miller Capital Corporation, Stephen A McConnell, Jock Patton, and Dickerson Wright. Under Section 8.1(a) of the Security Agreement, an Event of Default includes "any Event of Default under and as defined in the Securities Purchase Agreement." Under Section 8.2 of the Security Agreement, upon the occurrence of any Event of Default and at any time while such Event of Default is continuing, we have the right to demand that you assemble the Collateral (as that term is defined in the Security Agreement), to take possession of the Collateral and to sell such Collateral at a public or private sale. Miller Capital Corporation, as agent for the Lenders, hereby demands that you assemble the Collateral, as identified on Exhibit A hereto, and wherever now located, and make it available at your offices located at 1401 Brook Drive, Downers Grove, Illinois. Please provide a written, detailed listing of the Collateral and forward it to us via facsimile to (602) 225-9024 as soon as possible. Miller Capital Corporation, as agent for the Lenders, currently intends to dispose of the Collateral in a public sale via telephone at 9:00 a.m., Arizona time, August 14, 2001, to be held at the offices of Squire, Sanders & Dempsey L.L.P., 40 North Central Avenue, Suite 2700, Phoenix, Arizona 85004. As a guarantor of Lexon's obligations under the notes issued pursuant to the Securities Purchase Agreement, you may pay in full all outstanding amounts due at any time prior to the disposition date. If you wish to pay these amounts, please contact us at (602) 225-0504. You are entitled to an accounting of the unpaid indebtedness. The charge for such an accounting will be $100. You may request an accounting by calling us at (602) 225-0504. 2 EXHIBIT 99 We also request that you waive your right to notice of disposition of the collateral pursuant to Section 9-624 of the Uniform Commercial Code of the State of Illinois. Under that provision, a debtor may waiver the right to notification of disposition of collateral only by an agreement to that effect that is entered into and authenticated after a default. If you consent, please sign below and return an originally signed copy to us at: 4909 E. McDowell Road, Phoenix, Arizona 85008. If you have any questions, please contact Joel J. Agena, special counsel to Miller Capital Corporation, at (602) 744-6224. Thank you. Sincerely, /S/Rudy R. Miller Miller Capital Corporation, as agent for the Lenders. Rudy R. Miller cc: Joel J. Agena, Esq. We hereby waive our right to notice of disposition of the collateral pursuant to Section 9-624 of the uniform commercial code of the State of Illinois. LEXON TECHNOLOGIES, INC. /S/Kenneth J. Eaken By: Kenneth J. Eaken Title: President Dated July 27, 2001 CHICAGO MAP CORPORATION /S/Kenneth J. Eaken By: Kenneth J. Eaken Title: President Dated July 27, 2001 3 EXHIBIT 99 EXHIBIT A COLLATERAL All of the property described below in, to or under which Chicago Map Corporation ("Debtor") now has or hereafter acquires any right, title or interest, whether present, future or contingent, and in Debtor's expectancy to acquire such property (all of the property described on this schedule is herein called the "Collateral"): 1. All accounts, receivables, contract rights, rights to payment, documents of title, deposit accounts, certificates of deposit, investment property, intellectual property, general intangibles, instruments, documents and chattel paper (including all accounts receivable, notes, drafts, lease agreements and security agreements), and all goods, if any, represented thereby, whether now existing or hereafter acquired or created from time to time in the course of Debtor's business; 2. All inventory now owned or hereafter acquired, including all goods held for sale or lease in Debtor's business, as now or hereafter conducted, and all materials, work in process and finished goods used or to be consumed in Debtor's business (whether or not the inventory is represented by warehouse receipts or bills of lading or has been or may be placed in transit or delivered to a public warehouse); 3. All equipment now owned or hereafter acquired, including all furniture, fixtures, furnishings, vehicles (whether titled or non-titled), machinery, materials and supplies, wherever located, including but not limited to such items described on the collateral schedule (if any) attached hereto and by this reference made a part hereof, together with all parts, accessories, attachments, additions thereto or replacements therefor; 4. All negotiable and nonnegotiable documents of title; 5. All monies, securities, instruments, documents and chattel paper now held by or hereafter delivered to Secured Party, together with all property rights and security interests evidenced thereby, all increases thereof (including, without limitation, stock dividends), all profits therefrom and all transformations thereof, including but not limited to such items described on the collateral schedule (if any) attached hereto and by this reference made a part hereof; 6. All tax refund claims, all policies or certificates of insurance covering any of the Collateral, all contracts, agreements or rights of indemnification, guaranty or surety relating to any of the Collateral, and all claims, awards, loss payments, proceeds and premium refunds that may become payable with respect to any such policies, certificates, contracts, agreements or rights; 7. All ledger cards, invoices, delivery receipts, worksheets, books of accounts, statements, correspondence, customer lists, files, journals, data, ledgers and records in any form, written or otherwise, including any computer readable memory and any computer hardware or software necessary to utilize, create, maintain and process such memory related to any of the Collateral; 4 EXHIBIT 99 8. Tradenames, trademarks, service marks, logos, insignia and other distinctive marks or names (subject to any franchise or license agreements relating thereto); 9. All claims for loss or damage to or in connection with any of the Collateral, all other claims in any form for the payment of money, including tort claims, and all rights with respect to such claims and all proceeds thereof; 10. All attachments, accessions, tools, parts, supplies, increases and additions to and replacements, extensions, renewals, modifications of and substitutions for any of the Collateral; and 11. All products and proceeds of the Collateral, in any form, including all proceeds received, due or to become due from any sale, lease exchange or other disposition of any of the Collateral, whether such proceeds are cash or noncash in nature or are represented by checks, drafts, notes or other instruments for the payment of money. -----END PRIVACY-ENHANCED MESSAGE-----